In the world of technology and politics, things sometimes happen that defy logic and transcend ordinary reality. Imagine a country fining a tech company millions of dollars for refusing to pre-install government apps on devices that the company has not officially sold within that country’s borders for years! This is exactly what is currently happening between the Federal Antimonopoly Service (FAS) in Russia and Apple, in a new chapter of a drama where laws are imposed on phones arriving via the black market.
A $50 million fine for gray market phones
Russian authorities have launched an official antitrust investigation against Apple for failing to comply with government instructions regarding the pre-installation of the national messaging app Max and the local store RuStore on iOS devices such as the iPhone and iPad. According to official data released by the Russian competition authority, the company faces a fine that could reach about 4 billion rubles, equivalent to 50 million US dollars.
The ironic twist in this threat is that Apple has not sold any iPhone or iPad device within Russian territory officially or through an authorized distributor for more than four years, specifically since the beginning of the Russian-Ukrainian war in early 2022. This means that all new devices reaching Russian users are brought in through unofficial channels and the black market, and therefore, Apple cannot technically or legally control the pre-configuration of these devices before they are sold.
A history of tension and the banning of Apple services
The relationship between Apple and the Kremlin has seen ups and downs for many years. In 2019, Apple complied with some Russian demands to show the Crimean Peninsula as part of Russia within the Maps app for users inside the country, and it also initially agreed to pre-installation laws in 2021. However, the situation changed completely after 2022, when Apple halted its direct sales, canceled payment options for its services, and reverted to showing Crimea as part of Ukraine.
In return, Russian authorities have not stopped applying pressure; they previously blocked the FaceTime app, claiming it was used for illegal activities, a measure that coincided with the launch of the competing government messaging app, Max. With all payment and subscription loopholes within the App Store closed, it seems the regulatory conflict will continue with no hope for a near resolution as long as Apple remains outside the direct Russian market.
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